S.Korea stocks edgy on fresh round of Sino-U.S. tariffs

Credit: REUTERS/AGUSTIN MARCARIAN

Round-up of South Korean financial markets: South Korean shares trod water on Monday as tit-for-tat tariffs between the United States and China took effect, reinforcing fears of a gloomy global growth outlook. The Korean won weakened, while the benchmark bond yield rose.

* KOSPI index steady, foreigners net sellers

* Korean won weakens versus U.S. dollar

* South Korea benchmark bond yield rises

SEOUL, Sept 2 (Reuters) - Round-up of South Korean financial markets: South Korean shares trod water on Monday as tit-for-tat tariffs between the United States and China took effect, reinforcing fears of a gloomy global growth outlook. The Korean won weakened, while the benchmark bond yield rose.

** The United States slapped 15% tariffs on a variety of Chinese goods on Sunday - including footwear, smart watches and flat-panel televisions - while China imposed new duties on U.S. crude, the latest escalation in a bruising trade war.

** The tariff issue could be a negative factor, but the market was already bracing for the issue, which explains a limited drop of the KOSPI, said Kim Dae-jun, analyst, Korea Investment & Securities.

** A variety of studies suggest the tariffs will cost U.S. households up to $1,000 a year and the latest round will hit a significant number of U.S. consumer goods.

** South Korea's factory activity shrank in August but at a slower pace than in July, a private sector survey showed on Monday, as global trade frictions and an escalating diplomatic dispute with Japan hit demand for the country's products.

** As of 0214 GMT, the Seoul stock market's main KOSPI was up 2.44 points or 0.12% at 1,970.23 points, after opening the session 0.3% lower.

** South Korea's battery makers slipped after local media reported that an energy storage system (ESS) facility in the country's South Chungcheong Province has caught fire.

** Foreigners were net sellers of 35.2 billion won ($29.03 million) worth of shares on the main board.

** The won was quoted at 1,213.0 per dollar on the onshore settlement platform , 0.15% lower than its previous close at 1,211.2.

** In offshore trading, the won was quoted at 1,212.3 per U.S. dollar, down 0.2% from the previous session, while in non-deliverable forward trading its one-month contract was quoted at 1,210.5 per dollar.

** MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.25%, after U.S. stocks closed lower on Friday. Japanese stocks fell 0.29%. [MKTS/GLOB]

** The KOSPI dropped 3.69% so far this year, and lost 4.8% in the previous 30 trading sessions.

** The current price-to-earnings ratio is 12.10, the dividend yield is 1.28% and the market capitalisation is 1,242.04 trillion won.

** The trading volume during the session in the KOSPI index was 123.59 million shares and, of the total traded issues of 889, the number of advancing shares was 437.

** The won has lost 8.0% against the U.S dollar so far this year.

** In money and debt markets, September futures on three-year treasury bonds dipped 0.04 points to 111.05, while the 3-month Certificate of Deposit rate was quoted at 1.49%.

** The most liquid 3-year Korean treasury bond yield rose by 4.4 basis points to 1.209%, while the benchmark 10-year yield climbed by 3.2 basis points to 1.305%.

($1 = 1,212.6600 won)

(Reporting by Hayoung Choi, Editing by Sherry Jacob-Phillips) ((hayoung.choi@thomsonreuters.com; +82 2 6936 1468;)) Keywords: SOUTHKOREA MARKETS/MIDDAY

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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